Tight Government Research Articles

The Evolution of Government–Enterprise Strategies of “Expressway + Logistics Distribution”

Currently, China’s expressway revenue and expenditure imbalance problem is serious. The development of an “Expressway Derivative Economy” (EDE) helps address expressway deficits, ensuring the expressway's sustainable operation. The “Expressway + Logistics Distribution” (ELD) mode is a crucial form of the EDE and enhances expressway traffic flow and asset income. However, the cooperation mechanism among stakeholders remains unclear, hindering the widespread promotion of this mode. This study designs two ELD modes and elaborates on their respective advantages. Therefore, a three-party evolutionary game model involving the government, expressway groups, and logistics enterprises is established. Government “land-use-right” grant and tax incentive policies are formulated to explore the cooperation mechanism among stakeholders. The results indicate that both government “land-use-right” grant and tax incentive policies positively influence the positive evolution of the system. However, when the government “land-use-right” grants reach a high level, the willingness of logistics enterprises to choose entry will decrease due to resource crowding. Comparatively, a higher-level “land-use-right” grant policy significantly enhances the role of government tax incentive policy in promoting the positive development of the system. During tight government funding, it is a feasible policy to prioritize expressway groups by providing more tax incentives. The findings provide theoretical guidance for promoting the ELD mode.

Empowering the Relationship Between the Government Functional Departments and Local Government Integration: An Integrated Study Based on Urban Digital Governance Platforms

Within the context of modernising government governance, the "platform" in the construction of digital government has become key in driving the efficiency of government services and management. This paper, based on the Technology-Organisation-Environment (TOE) framework and combined with theories of holistic governance and collaborative governance, delves into the crucial role of information technology and emerging governance models in eliminating barriers between government departments, optimising departmental structures, and fostering mechanisms for inter-departmental collaboration and sharing. Throughout the research, emphasis is placed on the importance of emerging technologies such as cloud computing, big data, and artificial intelligence in promoting efficient collaboration and resource sharing between government departments. By integrating and optimising governmental internal and inter-departmental data resources and service processes, it is possible to effectively advance the enhancement and integration of the relationship between the government functional departments and local government relations, adapt to the rapid changes in societal demands, and provide more precise and convenient public services. The core objective of this study is to establish a unified government big data platform, promoting the optimisation and integration of departmental structures, constructing an efficient mechanism for departmental collaboration and sharing, achieving data sharing and flow, and establishing a tight governance network. This aims to comprehensively enhance government governance capabilities and service quality, provide assurance for achieving more efficient and equitable governance objectives.

Empowering the Relationship Between the Government Functional Departments and Local Government Integration: An Integrated Study Based on Urban Digital Governance Platforms

Within the context of modernising government governance, the "platform" in the construction of digital government has become key in driving the efficiency of government services and management. This paper, based on the Technology-Organisation-Environment (TOE) framework and combined with theories of holistic governance and collaborative governance, delves into the crucial role of information technology and emerging governance models in eliminating barriers between government departments, optimising departmental structures, and fostering mechanisms for inter-departmental collaboration and sharing. Throughout the research, emphasis is placed on the importance of emerging technologies such as cloud computing, big data, and artificial intelligence in promoting efficient collaboration and resource sharing between government departments. By integrating and optimising governmental internal and inter-departmental data resources and service processes, it is possible to effectively advance the enhancement and integration of the relationship between the government functional departments and local government relations, adapt to the rapid changes in societal demands, and provide more precise and convenient public services. The core objective of this study is to establish a unified government big data platform, promoting the optimisation and integration of departmental structures, constructing an efficient mechanism for departmental collaboration and sharing, achieving data sharing and flow, and establishing a tight governance network. This aims to comprehensively enhance government governance capabilities and service quality, provide assurance for achieving more efficient and equitable governance objectives.

Building integrated primary health care: the role of the government in China and Thailand

ABSTRACT While the importance of primary health care (PHC) as a foundation for a strong healthcare system is widely accepted, the policies needed to achieve it remain deeply controversial. Some proponents call for a greater role for market and user choice in expanding and strengthening PHC, whereas others recommend a greater role for the government in directing its development. The objective of this paper is to assess these arguments by comparing the experience of China and Thailand in strengthening PHC. We find that tight government steering of the healthcare system in Thailand has produced better integration and eventually outcomes than the more decentralized and competitive system in China. The Chinese government’s massive administrative and fiscal efforts to strengthen PHC have been undermined by systemic barriers in the wider health system, notably fee-for-service and out-of-pocket financing that distort the incentives of healthcare providers. A key conclusion to emerge from the analysis is that central stewardship and steering accompanied by appropriate incentives to promote integration are critical to building effective primary health care.

The Benefits of Cross-Border Corporate Venture Capital Investment on the Likelihood of a Venture Firm’’s IPO

Purpose - Extant research indicates that CVC investments create value for venture firms and generally enhance the likelihood of a successful venture exit. In particular, despite the globalization of CVC investments, the impact on venture firm exit performance has been largely overlooked. Thus, this study explores the impact of cross-border CVC investments on the likelihood of a venture firm’s IPO. We argue that the foreignness of CVCs increases the likelihood of IPO, but this positive relationship is weakened when CVC units have a tight structure.
 Design/Methodology/Approach - The hypotheses are tested with 1,874 high-technology venture firms in the U.S. that received CVC investments between 1994 and 2009. A two-stage analysis was employed to address potential selection bias. In the first stage, we employed a probit model to predict the probability of receiving cross-border CVC investment. In the second stage, we conducted a probit regression analysis on the likelihood of IPO, incorporating the inverse Mills ratio to address selection bias.
 Findings - We found that the foreignness of CVCs increases the likelihood of a venture firm’s IPO. However, this positive impact is weakened when CVCs have a tight governance structure.
 Research Implications - This study highlights the benefits of cross-border CVC investments and enriches resource dependence theory by reconciling it with institutional theory, depicting the importance of both reducing resource constraints to create value for venture firms and the institutional logic pursued by CVCs. This study suggests that entrepreneurs should be careful with CVC units that prioritize strategic objectives.

Governance, innovation networks, and climbing the upgrading ladder: The case of Philippine and Thai manufacturers in global value chains

This paper argues that the economic upgrading of suppliers in global value chains (GVCs) is influenced by the prevailing governance structures in supplier-lead firm relationships. Using a novel governance index for Philippine and Thai manufacturers, this paper tests if tight effective control received by suppliers can be detrimental to higher-order GVC upgrading. The unique 2012 Survey on Adjustments of Establishments to Globalization was used to calculate the index for Philippine manufacturers, while the World Bank’s Productivity and Investment Climate Study 2006–2007 was used for Thailand. The econometric results confirm that tight governance negatively affects upgrading in both countries. Specifically, the Philippine estimates show that tight governance has no impact on process upgrading given that: (1) all GVCs benefit from efficient suppliers, regardless of governance structures; and (2) process upgrading has relatively simpler technological requirements than higher-order upgrading. Tight governance significantly reduces the probability of achieving more sophisticated product, functional, and intersectoral upgrading, especially when this encroaches on the lead firm’s core functions. But since governance and control are necessary for efficient GVC operations, suppliers must conscientiously build capabilities and networks to move up the upgrading ladder. For weak-capability suppliers, innovation networks are important external sources of technology and knowledge spillovers.

Myths and ceremonies among the corporate governance institutions: introducing the concept of corporate governance culture

PurposeThe purpose of this study is to provide the conditions for governance effectiveness and explain why the same rules often result in not the same norms.Design/methodology/approachThe author proposes a “corporate governance culture” concept explaining the differences within corporate governance institutions and making it possible to measure their effectiveness. Based on a literature review that included 186 research studies published in the corporate governance field, the author found that most (160) concern structural numerical variables. Only 26 refer to behavioural and cultural issues, and they support the idea of an interdisciplinary approach to governance problems.FindingsA significant contribution of this paper is that it proposes an integrative framework that operationalises psychological, sociological and philosophical issues that influence corporate governance mechanisms. The proposed concept can reanimate the debate about the need for tight governance regulations or leaving room for a loose governance regime.Originality/valueThe idea of “corporate governance culture” explains the divergences identified in studies on corporate governance mechanisms, pointing out behavioural and cultural issues as crucial aspects of governance bodies.

Futures of Europe: The City of London’s Commodity Exchanges, the European Economic Community, and the Global Regulation of Futures Trading (1960s–1980s)

Since the mid-1970s, the U.S. commodity futures exchanges have increasingly been the focus of tight government regulation, which resulted in strong control by a specific agency: the Commodity Futures Trading Commission. In Europe, the regulation of futures diverged from the U.S. model. No regulation at the communitarian level was implemented; at the national level, the United Kingdom emerged as a model of self-regulation of commodity markets. This article explores the historical causes behind this lack of regulation in Europe, placing it in the context of global commodity trading and arguing that the European regulation of futures trading was reshaped by a dialogue established between the European Commission and big players of commodity futures trading in the City of London. Since the mid-1960s, the City of London has become a pivotal global market venue for commodity futures, which has increasingly attracted players from abroad, thanks to its financial integrity and self-regulatory model. Both established London merchants and emerging players in the global trade of financial products cooperated to stave off any attempt at regulating the London futures exchanges. The inference here is that those attempts were instrumental in setting the conditions leading to the regulatory fragmentation that still characterizes futures trading in the global market.

Greek Tragedy or Gestation Period: Future of the Modern Church in Greece

Greek Tragedy or Gestation Period: Future of the Modern Church in Greece

ПЕРСПЕКТИВИ РОЗВИТКУ ЛОГІСТИЧНОГО УПРАВЛІННЯ В УМОВАХ ПАНДЕМІЇ COVID-19

Статтю присвячено вивченню сценаріїв виходу логістичної індустрії з економічної кризи, спричиненої пандемією COVID-19, а також дослідженню перспектив розвитку логістичного управління в умовах постепідемічної реальності. Показано, що COVID-19 став визначальним фактором світового скорочення обсягів виробництва і торгівлі у 2020 р. Разом із тим після першого локдауну відбулося поступове відновлення темпів виробництва, і стали можливими декілька сценаріїв подальшого розвитку подій. Показано потенційні загрози, що супроводжують кожен із сценаріїв, що може бути корисним для логістичних компаній, які займаються стратегічним плануванням. Виявлено, що активно розвивається ринок логістичних послуг для кінцевих споживачів (B2C), причинами чого є перехід людей на роботу в онлайн, зміна купівельних звичок у напрямі здійснення покупок через Інтернет. Виявлено, що логістичні компанії в умовах пандемії зосереджують увагу на трьох основних маркерах: безпеці, економічній ефективності і комунікаціях із клієнтами.

A rapid analytics tool to map the effect of rezoning on property values

Cities are continually evolving through adjustments to zonings. The potential to integrate more equitable and effective value capture mechanisms into the rezoning process makes estimation of increases in land value from rezoning of interest to urban planners. The use of Residual Land Valuation (RLV), while accepted practice in development feasibility calculations, tends to be absent from the rezoning process because it is outside the skill set of most planners. Also, RLV has historically been applied to individual land parcels with limited potential for wider estimation of land value, and is generally not embedded in planning tools limiting the potential for value capture mechanisms to be included in the early scenario phases of rezoning decisions. This study addressed these issues. An RLV tool to estimate value uplift from rezoning was developed and embedded into a planning support system called Rapid Analytics Interactive Scenario Explorer (RAISE) to explore densification options associated with transport-oriented development. The co-design of the RLV tool with end-users and its test in a real case scenario in Greater Sydney has demonstrated the potential of RAISE-RLV. Specific advances included development of an algorithmic approach to RLV, that could be automated and applied across multiple parcels of land in rapid response to changing zoning. Second, such calculations were incorporated into a platform compatible with established rezoning decision making processes. The study demonstrated that it is possible to include RLV in a platform that improves users' understanding of the valuation process. The RAISE-RVL approach and tool can make a significant contribution to well-considered urbanisation. In addition, in the current era of tight government budgets, properly informed value capture mechanisms are a promising strategy for funding new infrastructure supporting both urban growth and the broader goals that growth can realise.

BP’s Energy Outlook Foresees Big Shift for Oil Demand

Last year, BP theorized that peak oil demand could occur by 2030. In a major shift, the international major says that peak demand may have already happened. This is according to BP’s newly published Energy Outlook 2020 which outlines different scenarios that the company has developed to imagine how the global energy transition will unfold. In two of these scenarios, a “rapid” transition case and a more aggressive “net-zero” case, the changing winds of the energy landscape coupled with the economic toll of the COVID-19 pandemic will mean that global crude demand never again surpasses 2019’s average of around 100 million B/D. Along these lines, the models suggest that 2019 could also mark the peak of carbon emissions from energy use. To varying degrees both the rapid and net-zero scenarios assume that tighter government policies around emissions and increases in carbon pricing will accelerate the current growth trajectory of renewable installations. The biggest difference between the two is that the net-zero scenario expects energy consumers themselves will move the needle even more by changing their behaviors and energy-consumption preferences. By 2050, these factors could lead global demand to be as low as 55 million B/D to 30 million B/D. BP’s “business-as-usual” case holds as its underlying assumption that government policy, technology uptake/development, and consumer preferences will continue to evolve toward renewables at generally the same pace as we have seen in recent years. Regardless, all three scenarios see the consumption of coal, oil, and natural gas dropping while the role of renewable energy is set to soar. The outlook highlights that fossil fuels accounted for 85% of primary energy demand in 2018 but that by 2050 they may represent only 65 to 20% of the share. “This would be entirely unprecedented. In the modern history of energy, there has never been a sustained decline in the consumption of any traded fuel,” said Spencer Dale, the chief economist at BP. As fossil fuels face diminishing demand, renewable sources of energy could all increase their share of the energy mix from 2018’s figure of 5% to between 20 and 60% by the end of the outlook’s 30-year time frame. Wind and solar are expected to represent the lion’s share of this growth. If that happens, Dale added that renewables would “penetrate the energy system more quickly than any fuel in modern history.” BP’s outlook comes a month after the company announced during an earnings call with investors that it was attempting to shed its reputation as an international oil company and construct a new one as an integrated energy company that will spend $5 billion annually on low-carbon technologies while also setting a target to reduce its overall oil and gas production by 40% by 2030.

Marketization vs. market chase: Insights from implicit government guarantees

Local Government Financing Vehicles (LGFVs) and state-owned enterprises (SOEs) provide implicit guarantee during the issuing of bonds, thereby reducing their funding cost. The credit spreads are lower when issued by a LGFV with a higher administrative level. This means that implicit guarantee is also strengthened with government centralization. We also explain the anomaly of municipal corporate bonds (MCBs)’ spreads decrease after a marketization regulation of removing implicit guarantees. This paper provides strong evidence that the market will chase implicit guarantee when default wave comes even under tight government regulations.

Impacts of the zero mark-up drug policy on hospitalization expenses of COPD inpatients in Sichuan province, western China: an interrupted time series analysis

BackgroundSince 1950, the hospitals had been permitted to take a 15% mark-up of drug purchase price to remedy the loss of public hospitals and doctors’ salaries in China due to tight government budget. This policy resulted in an increasing over-prescriptions which increased burden for patients eventually. The soaring medical expenditures prompted Chinese government to launch the zero mark-up drug policy (ZMDP) in 2009, which aims to eliminate physicians’ financial incentives and lighten patients’ economic burden through cancelling the 15% mark-up. The purpose of this study is to assess the impacts of the ZMDP on hospitalization expenses for inpatients with chronic obstructive pulmonary disease (COPD) in western China.MethodAn interrupted time series was used to assess the impact of the ZMDP in 25 tertiary hospitals of Sichuan province, in which the policy was implemented in 2017. Monthly average total hospitalization expenses including drug expenses, medical service expenses and diagnosis expenses of COPD inpatients were analyzed with segmented regression model developed from January 2015 to June 2018.ResultsAfter the intervention of the ZMDP, the total hospitalization expenses of COPD patients significantly decreased immediately by 1022.06 CNY (P = .011). The post-policy long-term trend was decreasing by 125.32 CNY (P < .001) per month compared to the pre-policy period. The drug expenses kept downward trend both before and after the policy implementation. It had decreased by 46.42 CNY (P < .001) per month on average before the policy implementation and then dropped 1073.58 CNY (P < .001) immediately after the policy was implemented. Meanwhile, the medical service expenses had an increasing baseline trend of 14.93 CNY (P < .001) per month before the policy intervention, but it increased 197.75 CNY immediately after the policy was implemented (P = .011). The pre-policy period long-term trend of diagnosis expenses had increased by 25.78 CNY (P < .001) per month and decreased immediately by 310.78 CNY (P = .010). The post-policy trend was decreasing by 35.60 CNY (P = .001) per month compared to the pre-policy period.ConclusionOur study suggested that the ZMDP have been an effective intervention to curb the increase of hospitalization expenses for inpatients with COPD, especially the drug expenses in western region of China.

Artificial Intelligence in China: The Current State of Industry and Development Trends

Currently, in many countries of the world, developments in the field of artificial intelligence are given priority. Among the main countries competing for leadership in this area, China is gaining more and more weight, surpassing the United States of America in America who is considered the undisputed market leader. Despite tight government control and generous financial support for the artificial intelligence sector, which leads to the industry’s boom, China faces certain difficulties in developing this high-tech industry. Some of these difficulties are due to historical factors, while others are due to the state of the industry’s market. The country’s leaders are planning to overcome some of them by reforming related industries and introducing specific approaches to strengthen the position of Chinese companies involved in developments in machine learning, deep learning, natural language processing, computer vision fields, as well as working on projects in the field of big data analysis, autonomous intelligent systems, etc. This article provides an overview of the current state of the artificial intelligence industry in China and analyzes the recent trends of this market in China.

The Governance of Tax Audit Enforcement: Indicators on Automation Incentive, Tax Avoidance and Firm Characteristics

The intense development in the Fourth Industrial Revolution (IR 4.0) demands tight governance of tax audit enforcement by the Inland Revenue Board Malaysia (IRBM) on firms claiming automation incentive. Through tax audit enforcement, IRBM provides a monitoring mechanism for corporate governance. However, due to data confidentiality, little has been established on what indicators that caused tax authority to carry out tax audits. In this research, we employed tax return and historical audit data of corporate taxpayers consisting of profitable and loss firms which consistently claim the Reinvestment Allowance (RA) to examine the indicators applied by the tax authority in executing the role of governance. Employing Binary logistic regression, firm characteristic of firms experiencing tax audit was observable, but tax avoidance and incentive utilization indicators were not apparent. Tax avoidance indicators such as effective tax rate and book-tax difference, loss firms, and incentive utilization receive less attention when it comes to tax audit enforcement. Examining firms that experienced tax audit enforcement has enriched our understanding of indicators that draw the interest of tax authorities when it comes to tax audits. Overall, this research could be the first in Malaysia that has used actual historical tax audit record, which has revealed new evidence on the indicators preferred by the IRBM in conducting a tax audit. The slight fine-tuning of the responses, especially on tax avoidance and incentive utilization indicators for tax enforcement might produce comprehensive tax audit coverage and yield a greater mechanism for governance.

‘Trading Boots for Dancing Shoes’: Women and the Military Expression of the American Century in France, 1917–1967

This article examines the role of women in public diplomacy operations on and around U.S. military bases in France, especially during the Cold War. It aims to illustrate the diplomatic role of military officers’ wives in France and shows the vested interest of the military establishment in cooperating with civilian offices of public diplomacy. The more the United States demonstrated its leadership on the global scene, manifested by a wave of unprecedented military incursions into foreign territories, the more tight government control gave way to a strategy focusing on informal contacts between women of both countries at the local level. This article argues that military wives, often considered a traditional instrument of America’s effort to engage with foreign populations, contributed to the ‘parabellicist’ approach in U.S. public diplomacy, a strategy which aimed to generate ‘a nation in arms’, as has been suggested. The article contends that women’s social and cultural initiatives intended not to influence French women by pushing American values, but to support the U.S. national security effort from the bottom up, which was the most critical challenge underlying the ‘American Century’ in France.

개발연대 한국기업의 변칙적 외화자금 조달에 대한 사례연구

모두 7차례에 걸친 경제개발 5개년 계획 기간(1962~1996)에 한국경제는 급속히 성장했다. 다만, 축적자본이 거의 전무했던 까닭에 국가차원에서는 해외자본, 기업차원에서는 타인자본에 의존할 수밖에 없었다. 당시 사채(私債) 금리가 월 2~3% 이르렀던 점이 시중 자금난을 대변한다. 대기업으로서는 이미지 훼손을 염려해서 차마 사채시장을 이용할 수는 없었고, 상업은행 혹은 이른바 “단자(短資) 회사”를 통해 긴급자금을 조달해서 하루하루를 넘기는 일이 많았다.BR 현재도 큰 차이가 없지만 당시에 운전자본 조달을 위한 외화차입은 금지됐다. 엄격한 규제와 긴급한 자금수요 사이에서 일부 대기업은 다양한 방법으로 사실상의 단기 외화자금을 조달했다. 규정의 허점을 파고든 것과 탈법적인 것이 뒤섞여 있었는데 어느 것이나 “핫 머니”를 우려한 정부정책에 배치된 변칙금융이었다. 본 사례연구에는 가장 일반적인 수출환어음의 선적전 매입에서 시작해서 각종 외화표시 운전자금 조달 방안, 외환 옵션을 가장한 외화차입 등 여섯 가지 유형, 열 두 종류의 기법을 통해 당시의 국가적 자금난 및 기업과 금융기관의 비상대처 방식을 소개한다. 기업입장에서 보면 변칙금융이 자금부족을 해소하는 소중한 기회였는데 고금리에다 환차손을 부담하는 경우가 많았지만 당시는 금융비용보다 “자금조달” 자체가 관건이 됐다. 변칙금융을 제공한 은행 입장에서는 수익창출, 실적제고 등의 혜택을 얻을 수 있었다.BR 본 사례연구는 기업의 외화금융을 장기간 직접 관찰한 저자가 개인 메모 및 각종 문헌자료를 참고하여 저술한 것이다. 특정 기업 혹은 인물을 비난하거나 정부의 외환정책을 비판하자는 것이 아니며, 기록을 남겨서 기업 재무담당자, 정부정책 입안자, 기업 역사가 등에게 참고가 되도록 하고자 할 뿐이다.

Partial private sector oversight in China's A-share IPO market: An empirical study of the sponsorship system

The Chinese IPO market has introduced the private oversight of sponsors under tight government control. We examine the performance of IPOs that are managed under private sector oversight, known as the sponsorship system. Using buy-and-hold returns, operating performance measures, Fama-French five factor models, propensity score matching, and triple DiD (DDD), we find that long-term performance is better under the sponsorship system. Additionally, we find that IPOs with reputable sponsor institutions and reputable sponsor representatives perform better. Relatedly, the CSRC takes less time to review the admission documents prepared by reputable-sponsor institutions. Regulatory action taken by the CSRC is shown to be effective, as the number of IPO businesses declines for sanctioned sponsor institutions, and the IPOs managed by them perform better once they have received a penalty.

ASSESSMENT OF THE DETERMINATS OF FINANCIAL SECURITY OF RAILWAYS IN UKRAINE

The paper is devoted to the study of determinants determined the level of financial security of economic systems. It is shown that the financial security of an economic system implies the achievement of a level of financial stability that will contribute to simultaneously maintaining financial equilibrium and ensuring targeted growth in line with the development strategy.The level of financial security of rail transport in Ukraine was analyzed and it was determined that the decline in its security was the result of a complex interaction of external and internal factors, the main of which were tight government regulation, shifting the financial burden of social responsibilities to Ukrzaliznytsya, PJSC, lack of competition in the transportation of the main nomenclature of cargo and the unsatisfactory state of non-current assets. Based on the Argenti’s method, it is shown that the consequence of the inefficient financial management of Ukrzaliznytsia, PJSC are the reduction of its insolvency.Three main determinants of the financial security of rail enterprises were identified: a reduction in traffic volumes, an unstable capital structure and the impossibility of timely repayment of current liabilities. An additive model for assessing the impact of selected determinants on the level of financial security of Ukrzaliznytsia, PJSC is proposed. The analysis of the model parameters showed that the greatest impact has the index of industrial production, which is due to the predominant formation of its own financial resources of rail transport due to income from freight traffic.A complex of measures designed to improve the financial condition of rail enterprises was proposed. It is substantiated that in order to equalize existing threats, it is necessary to take political decisions aimed at improving the financial condition of Ukrzaliznytsia, PJSC by reducing the intensity of leaching of its financial resources, as well as implementing an anti-crisis financial strategy aimed at optimizing the capital structure and financial rehabilitation of rail enterprises.